Q3 2025 UK Insurance Market Outlook

Q3 2025 UK Insurance Market Outlook
December 15, 2025 12 mins

Q3 2025 UK Insurance Market Outlook

global-market-insights-gmi-overview

Buyer-friendly conditions in the UK insurance market remain and prices continue to soften across most lines. While there are opportunities to reinstate limits and broaden cover, the focus for insurance buyers on providing high quality risk information and demonstrating good risk management remains.

Key Takeaways
  1. The softening trend in a highly competitive UK insurance market seen throughout the first half of 2025 continued throughout Q3.
  2. Abundant capacity provides buyers with the opportunity to take advantage of insurer competition to broaden cover and increase limits.
  3. With insurers continuing to focus on high-quality risk information, buyers should begin their renewal discussions early to secure the best deals.

Changing Risk Challenges

Organisations are facing an unprecedented risk environment. Aon’s 2025 Global Risk Management Survey revealed that a cyber attack or data breach continues to be the number one risk facing UK organisations, while business interruption has moved up into second; economic slowdown, geopolitical volatility and regulatory changes make up the top five. These evolving risks are impacting the insurance market; reshaping coverage, pricing, capacity and underwriting across key lines of business.

Despite these challenges, the good news for organisations is that the insurance market in Q3 2025 continues to be buyer-friendly. Pricing has decreased by as much as 11 percent to 20 percent, driven by abundant capacity, while limits have increased, coverage has broadened, and deductibles remain flat for the majority of placements. That said, insurers are not relaxing their underwriting standards, which means buyers should continue their focus on providing high-quality risk information at renewal to benefit from the current market: risk differentiation is a top priority.

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Our encouragement to you as an insurance buyer would be to maximise the coverage and limits that are available while insurance market conditions continue to trend in your favour.

Michelle Beverley
Chief Broking Officer, Commercial Risk, United Kingdom

Cyber Insurance in the UK

Attacks at an All-Time High but Insurance Pricing Remains Competitive

Current Conditions

Cyber continues to be the top risk for most organisations with claims reported at an all-time high. These attacks are affecting insureds across all sectors, although the severity is still quite low, reflecting the adoption of good risk management practices such as multi-factor authentication and regular testing of backups. Consequently, the cyber insurance market remains stable and prices are competitive, with rates down from 11 percent to 20 percent.

Outlook

Many organisations remain uninsured for cyber, which means some high-profile businesses affected by cyber attacks this year will have taken the entirety of those hits directly on their balance sheet. While those uninsured losses will have protected the insurance market from increases, the current claims climate means reviewing and strengthening corporate governance processes, ESG disclosures and cyber risk management are crucial steps at renewal.

  Risk Managed / Major Multinational Corporate / Mid-Market
Overall Soft / Stable Soft / Stable
Pricing -11 to -20% -11 to -20%
Capacity Ample Ample
Underwriting Prudent Prudent
Limits Increased Increased
Deductibles Flat / Decreasing Flat / Decreasing
Coverages Broader Broader
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2025 has been a defining year in the cyber landscape. A relentless wave of sophisticated attacks has reminded us that resilience is no longer optional, it’s essential. Our focus has been on empowering organisations to anticipate, adapt, and recover, ensuring that security remains a cornerstone of trust in an increasingly digital world.

Nathan Hankin
Head of Retail Cyber and Tech E&O, Commercial Risk, United Kingdom

Directors’ and Officers’ (D&O) Insurance in the UK

Competition is Good News for Buyers but the Market is Moderating

Current Conditions

The D&O market in the UK has remained predominantly soft throughout 2025, with pricing down in Q3 from 5 percent to 15 percent. Plenty of available capacity has allowed the negotiation of enhanced terms and broader coverage for insureds, and it’s a good time to consider buying higher limits of indemnity. There are signs that the market is moderating, however, with single-digit rate decreases becoming more common.

There's a notable uptick in shareholder actions and regulatory investigations centered on ESG disclosures covering climate, diversity and social responsibility. UK directors are also undergoing increased scrutiny from regulators such as the Financial Conduct Authority, especially around governance failures, cyber incidents and financial stability. It’s important to highlight that from a D&O perspective, executives can face personal liability following a cyber security breach, particularly where boards can't evidence robust oversight and incident response planning.

Outlook

Insurer appetite remains robust but for sectors experiencing financial distress, frequent liquidations or elevated risk profiles – such as startups, crypto firms and distressed retail – underwriting has become cautious with additional scrutiny, demanding even closer broker collaboration to achieve the best possible terms. If the market sees significant claims trends in areas such as ESG, cyber and insolvency, we would anticipate that market dynamics could quickly change.

  Risk Managed / Major Multinational Corporate / Mid-Market
Overall Soft Soft
Pricing -11 to -20% -11 to -20%
Capacity Abundant Abundant
Underwriting Flexible Flexible
Limits Increased Increased
Deductibles Flat Flat
Coverages Stable Broader
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It's important to review and strengthen corporate governance processes, ESG disclosures and cyber risk management, ensuring you can clearly demonstrate these improvements to insurers.

Mike Pearson
Head of Financial Lines, Commercial Risk, United Kingdom

Motor Fleet Insurance in the UK

Rate Rises Ease as Insurer Competition Intensifies

Current Conditions

Claims inflation remains a persistent feature of the UK motor fleet market. Rising repair costs, more complex vehicle technology and ongoing supply chain challenges have continued to put upwards pressure on claims spend during the last quarter.

Unlike the sharp increases earlier in 2025, however, greater insurer competition has eased average rate movements from 5–10% to around flat to +5%. This competition is most evident where insurers see sustainable performance and a clear risk management strategy and is far more limited where claims experience or exposures are challenging.

Well-performing fleets

For car and van fleets, we have seen insurers target attractive business more aggressively

  • Good claims experience and stable exposures are more likely to achieve flat rates.
  • Well-performing fleets that haven’t been marketed recently can, in select cases, secure double‑digit rate reductions.
  • Insurers are differentiating more for clients with strong data, clear risk management and consistent driver/vehicle controls.

Higher risk fleets

At the same time, we continue to see a different picture for fleets with more challenging profiles, such as:

  • Adverse claims performance over recent years;
  • High severity exposure (for example heavy haulage, hazardous goods, passenger transport or intensive urban delivery);
  • A high proportion of young or inexperienced drivers, or limited risk controls.

For these fleets, insurer appetite is more constrained and we have continued to see rate increases.

Outlook

We anticipate that the increased insurer competition seen in late 2025 may continue into the first part of 2026, particularly for:

  • Well‑performing car and van fleets; and
  • Clients that are prepared to share robust data and engage actively on risk improvement.

There will be meaningful opportunity for well‑managed fleets that can demonstrate strong control of their risks and claims. Conversely, fleets with unresolved performance issues should continue to budget for increases, although heightened competition should help limit the severity of increases compared with the peak of the hard market.

Insurers are also looking at long-term agreements (LTAs), particularly for cross-class and connected business.

  Risk Managed / Major Multinational Corporate / Mid-Market
Overall Moderate Moderate
Pricing Flat to +5% Flat to +5%
Capacity Ample Ample
Underwriting Prudent Prudent
Limits Flat Flat
Deductibles Flat Flat
Coverages Stable Stable
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We are working hard with insurers using data and analytics to identify forward-looking improvements which positively influence their fleet pricing, opposed to historic claims experience pricing.

Adam Richardson
Head of Motor, Commercial Risk, United Kingdom

Property Insurance in the UK

Double-Digit Decreases and Increased Coverage Available

Current Conditions

The property insurance market remains extremely competitive, driven by insurers’ positive reinsurance treaties coupled with their growth and retention strategies. This translates into rate decreases from 11 percent to 20 percent and, for insureds that can demonstrate a clear risk management framework, some have been able to achieve rate reductions near 30 percent. Excess layers are, when cost effective, now commonly absorbed into a larger primary quota share limit. From a coverage perspective, some insureds have been able to broaden natural catastrophe and underlying business interruption extensions. LTAs are being offered, and there are opportunities to negotiate a cancel and rewrite (replace an existing policy).

Outlook

2025 was a relatively benign year from a natural catastrophe perspective, meaning that reinsurance treaties are likely to be favourable at renewal on the 1 January 2026. Insurers are also looking to retain business and achieve growth, which should continue to lead to a buyer-friendly market, meaning now is a good opportunity to future proof programmes by reviewing values, sub-limits and making sure coverage is consistent. The geopolitical landscape remains changeable, however, which is leading to a lot of unknowns, particularly from a supply chain point of view, and this is having a direct effect on indemnity periods and limits in the current market.

  Risk Managed / Major Multinational Corporate / Mid-Market
Overall Soft Soft
Pricing -11 to -30% -11 to -30%
Capacity Abundant Abundant
Underwriting Flexible Flexible
Limits Increased Increased
Deductibles Flat Flat
Coverages Broader Broader
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It's critical that buyers demonstrate a strong risk management framework. Regardless of the market, and early engagement at renewal remains critical.

Pearce Stewart
Head of Property, Commercial Risk, United Kingdom

Casualty Insurance in the UK

Abundant Capacity with Options for Long-Term Agreements

Current Conditions

With price decreases from 11 percent to 20 percent, capacity is abundant and carriers are taking on risks that they might not have had the appetite for previously. The market is also seeing more cancel and rewrites for LTAs, leading to price reductions not just in the first year, but possibly in years two and three. US exposures, however, continue to attract higher rates, while exclusionary language around per- and polyfluoroalkyl substances (PFAs) is becoming commonplace.

Outlook

Insurer competition has become more intense as carriers approach the end of the year with growth targets still to meet, making it a good market for those buyers renewing now. Carriers are, however, becoming more selective when discussing new business, which can be a challenge for brokers who will need to know exactly what a buyer is looking for when going to market. Despite the selectivity, cover is broadening as insurers look to differentiate themselves. Good market management in terms of building relationships both with incumbent carriers and new carriers is critical to ensure those relationships stand the test of time and are future proofed.

  Risk Managed / Major Multinational Corporate / Mid-Market
Overall Soft Soft
Pricing -11 to -20% -11 to -20%
Capacity Abundant Abundant
Underwriting Flexible Flexible
Limits Increased Increased
Deductibles Flat Flat
Coverages Broader Broader
Quote icon

Meet with underwriters and show your knowledge and passion for your business and hopefully build new relationships.

Gemma Bailey-Madigan
Casualty Broking Director, Commercial Risk, United Kingdom

Advice for a Successful Renewal

Now is the time to future proof insurance programmes. The following advice can help towards securing a successful renewal:

  • Early engagement with insurers is especially significant alongside a clear strategy around coverage requirements.
  • Provide high-quality risk information with updated exposures and claims.
  • Ensure key stakeholders are available to meet underwriters.
  • Demonstrate strong risk management practices, including robust business continuity planning.
  • Take the opportunity to buy back cover and any limits that may have previously been reduced.

On-Demand: Quarterly Briefing: UK Insurance Market Insights

Join our UK Commercial Risk leaders as they deep dive into the latest developments in the UK risk environment.

Watch Webinar
Aon’s Thought Leaders
  • Michelle Beverley
    Chief Broking Officer, Commercial Risk, United Kingdom
  • Gemma Bailey-Madigan
    Casualty Broking Director, Commercial Risk, United Kingdom
  • Nathan Hankin
    Head of Retail Cyber and Tech E&O, Commercial Risk, United Kingdom
  • Mike Pearson
    Head of Financial Lines, Commercial Risk, United Kingdom
  • Adam Richardson
    Head of Motor, Commercial Risk, United Kingdom
  • Pearce Stewart
    Head of Property, Commercial Risk, United Kingdom

General Disclaimer

The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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